These are our frequently asked questions.
Risk can be defined as the probability to incur in losses over the expected gains. This metric is present in every single fund, and the classification attributed to it is on a scale of 1 to 7. The fund’s risk is as high as its value, up to a maximum of 7. The higher the risk the higher the probability to lose, however, the probability to win more is also higher.
ETFs are Investment Funds that are traded on the stock exchange. They are bought and sold throughout the day, and their price is constantly updated. They are usually associated with an index, and considered "passive investment", as there is no active manager trying to make the Fund perform as well as possible, there is only an automatic system that ensures that the ETF performs similarly to the index. ETFs are much less charged than Investment Funds.
The risk associated with each ETF depends on the asset class it invests in, naturally an ETF that invests in Stocks has a higher risk than an ETF that invests in Bonds. The higher the risk of the ETF, the longer the period of time that should be considered for the investment. If there's a considerable drop in the value of the ETF, a long-term investment allows more time to recover the value that was lost.
If you have any doubts or want to clarify any information, you can contact ActivoBank through: Helpline. 210 030 700; Skype: ActivoBankSimplifica; Email: email@example.com
An ETF is made up of the financial assets that belong to the index that they try to replicate.
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